WaPo Announces Major Changes to Nonunion Employee Retirement Plans

The Washington Post Tuesday announced that it would “eliminate future retirement medical benefits and freeze defined-benefit pensions for nonunion employees,” WaPo’s Steven Mufson reports. The media company also plans to pursue the same for its union employees.

Mufson writes:

“The changes will hit hardest at employees hired before 2009 who could plan on receiving pension payments based on their income and years of service. Each of those employees could see scores — or hundreds — of thousands of dollars less over the course of a retirement. More recent hires do not have traditional pension plans.”

“The Post will create a new cash balance plan to replace the pensions for nonunion employees and a separate but similar plan for those covered by the union. Those plans provide employees with a lump sum or annuity when they retire. But they do not guarantee a particular level of retirement payments, thus reducing the risk that Bezos would have to add money to the pension if financial markets plunged.”

For more, click on over to The Washington Post.